Kayaki Takaki “Weekly Gold Market Outlook” August 29, 2022 issue
Takashi Kaguragi, the president and CEO of Investment Daily News, and a master of cycle analysis, writes a weekly report on the outlook for the gold market.
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In Jackson Hole, Chairman Powell of the Federal Reserve indicated a policy stance to raise the policy rate further toward a restrictive level. U.S. inflation remains high, and even if growth slows due to rate hikes, the aim to prioritize price stability was shown. As a result, U.S. stock prices fell sharply on the 26th. The Dow fell by 1,008.38 dollars from the previous day, setting a monthly low for August. Along with the stock decline, the gold market also plunged. The near-month for the 26th closed at 1,740.60 dollars, down 21.2 dollars from the previous day. For the week, the close was down 12.4 dollars from the prior week.
However, it is not clear whether the 10-year U.S. Treasury yield has already priced this in, or whether it will react starting this week; the chair’s remarks did not show an extreme reaction.
In the chart of the U.S. 10-year yield, for the past two weeks it has been described as “it has fallen into a familiar chart pattern, but once it enters the complex phase, the head tends to be capped around the 3% area, and afterward it often settles between 2.6% and 3.0% for a while. During that time, the gold market is not expected to move much on the basis of interest rates.”
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【Takashi Kagami Profile】
Graduated from Kwansei Gakuin University, Faculty of Economics. In 1995, partnered with the world-renowned American market analyst, Raymond Merriman, and issued Japan’s first market cycle and astrology report. He is known for cycle and astrology-based market analysis. President and CEO of Investment Daily News, Investment Daily News Publishing Co., Ltd., Director of Wakabayashi FX Associates, Member of the Japanese Technical Analysts Association, Editor-in-chief of Investment Daily Alpha.
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